Mr. Branko Azeski,
President of the
Economic Chamber of Macedonia
MMag. Gerhard Schlattl, President
- Austrian Business
International,
Advantage Austria
Role
of business associations and cooperation with the policy makers
by
Mr. Branko Azeski,
President of the
Economic Chamber of Macedonia
Business
Associations - Institutions in the Intermediate Sphere of an Economy
If
we take into account that a market economy is organized in three
levels - a public (political) macrosphere, entailing public and
governmental organizations, and a microsphere - the world of business
and companies, then business associations are the institutions in the
economy’s intermediary layer, as they place their activities
between the first two spheres. As such,
they have the opportunity and capacity to bolster the efficiency of
the economy as a whole, to improve market competitiveness, and to
contribute to resolving integration- and globalization-related
issues. We could summarize the evidence
supporting the need of such institutions under the following points:
- Chambers of commerce encourage and develop a network of cooperation between the business sector and policy makers;
- They improve the efficiency of information flow in several directions;
- Institutions in the intermediate sphere have the opportunity to provide specific services and information;
- The overall management of the economy may be more targeted and efficient, and
- They enable practical implementation of the sustainability principle and enhance decentralization.
Institutions
classified as business associations include:
chambers of commerce, organizations of employers, professional
associations (representing the interests of a certain profession),
business confederations, as well as trade unions.
These entities hold an exceptionally important function, but
the efficiency of their operations and activities depends largely on
several factors, including: the country’s
system of organization, the number of members, and its financial
power, which is also reflected in their capacity to exert influence
and to lobby.
Roles
of Chambers at International Level
Chambers
voice the business sectors’ interests, and are institutions with a
long-standing history of being a significant economic factor in every
country, regardless of the country's system of commercial chamber.
The first chamber of commerce was formed in 1599 in Marseille,
France. Its establishment reflected a need to have an independent
institution, one that would regulate tax revenues from cargo handled
at the port. Afterwards, Napoleon saw a
general necessity to have institutions of this kind, and established
the first public model, based on a compulsory-membership system,
which is still present in France, Germany, the Netherlands, in other
countries in Europe, as well as countries in Africa, the Middle East
and Asia.
The
importance of existing and functioning chambers of commerce was yet
again emphasized after the end of the First World War and the
consequences that ensued in every area of life and at global level.
As there was no system of rules that would assist and govern
commerce, investments, finance or trade relations, in 1919, a group
of entrepreneurs decided to establish an organization to serve as a
representative of businesses around the world.
They founded the International Chamber of Commerce, seated in
Paris, and called themselves “the merchants of peace.”
They created the international rules, mechanisms and
standards, which still apply today. At the
moment, the ICC network covers 120 countries and represents 40
million businesses from around the world; in addition, it enjoys
top-level consultative status in the United Nations.
The constitution of this international organization realized
the idea for international economic unification of all businesspeople
and their national economies. It is a
classic example of how the private sector is able to fill in the gaps
that governments are unable to address themselves.
In this way, commercial chambers perform their principal duty
regarding issues connected to international commercial ties as they
establish inter-chamber cooperation.
The
beginnings of the chamber system in the Republic of Macedonia date
back to 1922, when the Chamber of Commerce and Industry, seated in
Skopje, was established with a law. In 1962, a law was adopted
establishing the single Economic Chamber of Macedonia.
In 2004, the Law on Chambers of Commerce in Macedonia defined
the Economic Chamber of Macedonia as a business and professional
association that harmonizes, represents and protects the interests of
its members organized in a chamber system under the private law
model, and unites over 15,000 member companies on a voluntary
membership principle. The Economic Chamber
of Macedonia has been a member of the International Chamber of
Commerce since 1994.
The
role of commercial chambers in the international sphere and the
significance of chamber-level cooperation are perhaps best reflected
in the data of EEN (Enterprise Europe Network). This network covers
50 countries and unites around 600 organizations, including chambers
of commerce, universities, government agencies, centers for transfer
of technologies, technological parks, national structures that
support innovations, etc. It has helped the
formation of over 7000 business partnerships and enabled 2,400
companies to apply to EU funds. It has
assisted the creation of over 100,000 technology-related,
intellectual property and business reviews; targeting SMEs by helping
them obtain licenses or find technology partnering opportunities.
Last year alone, 67 Macedonian companies promoted themselves
and signed business contracts with foreign partners using this
European network. Its users come from
various sectors and its application is not limited to business
cooperation, but includes transfer of technologies as well.
One-hundred and four entities participated in business
meetings that provide an opportunity to sign cooperation agreements,
and 138 cooperation requests from foreign companies seeking
partnerships with Macedonian ones have been received.
It is expected that 20 technical cooperation agreements be
signed this year.
Chambers’
Cooperation with Policy-Makers
Commercial
chambers are exceptionally resilient organizations that have stood
the test of time. In this current business environment, resting on
market power, capacity of private businesses, swift and efficient
solutions, and modern approaches to corporate management, the
significance of commercial chambers has remained intact, alongside
the need to involve the business sector in the development of
national economies. This means that
representatives of the business sector - chambers of commerce - are
facing the challenge of showing commitment to companies' needs by
establishing an effective dialogue with the government, promoting
businesses and providing them with services that address their
demands.
Understandably,
there are differences stemming from the chosen ‘chamber model’,
or commercial chambers’ system of organization, implemented at
national level. These affect the:
- Memberships conditions (voluntary or mandatory);
- Sources of finance;
- Services and quality of services, and
- Relationships with policy-makers and chances to lobby and protect the interests of the business sector.
The
latest global research on the systems of commercial chambers, which
covered 194 countries, gives an interesting piece of information: of
the total number of countries, 72 had private law model of commercial
chambers, with voluntary membership, while 199 had a public law model
with compulsory membership.
On
the other hand, regardless of the selected model of commercial
chambers’ system, but especially in the case of compulsory
memberships, chambers play a unique role, as they embody business
entities from the whole country, coming from different industrial
sectors and of different sizes. Chambers of
commerce are the responsible representatives of a wide array of
interests, and can function effectively only in a sophisticated and
well-developed policy-making system. In
this way, chambers can exert their influence over significant issues
via consensus, but simultaneously do so with the credibility and
integrity inherent to an institution of long-standing tradition and
history, holding such an important position in an economy.
It is well-known that these reasons make chambers of commerce,
as well as every actor involved in the process of policy-making,
responsible to take stances that are beneficial to everyone, rather
than focus on an isolated set of interests.
Every
crucial issue or process connected to the development and
implementation of policies affecting the business sector, significant
and fundamental proposals, positions, and changes, comes from
chambers of commerce and their bodies. It
is a fact that associations, affiliations, councils, groups and
similar entities, which are components of chambers of commerce,
usually include representatives of the business and academic
communities, who can share their knowledge and experiences at the
highest possible level. Hence, chambers of
commerce are the source of the most significant opinions, proposals,
analyses and forecasts, crucial to the economy as a whole.
Due to their credibility, chambers of commerce can have a
significant influence on the creation of policies, especially of
those that influence the operations of businesses.
Developments,
experts and relevant institutions around the world confirm that a
market economy would not be able to function without business
institutions, especially without chambers of commerce and their
activities in the intermediate area connecting the two spheres.
The structure of relationships between
these stakeholders, together with the manner in which they coexist,
is decisive for the complete system and its functionality.
Role
of business associations and cooperation with the policy makers
by MMag. Gerhard Schlattl, President - Austrian Business International, Advantage Austria
The
Austrian system
The
legal representation of interests for Austrian business is handled by
the Economic Chamber Organization. This consists of the Austrian
Federal Economic Chamber (headquartered in Vienna) and nine Regional
Chambers in the federal provinces.
Industry
Sectors
The
Federal Economic Chamber and the Regional Chambers are divided into
seven Industry Sectors: Crafts and Trades, Industry, Commerce,
Banking and Insurance, Transport and Communications, Tourism and
Leisure, Information and Consulting. These Industry Sectors provide a
link between the Trade Organizations found in the sector and the
respective Chamber.
In
addition to these Industry Sectors, there are Departments in the
Austrian Federal Economic Chamber (headquartered in Vienna) and in
the Regional Chambers which are responsible for tasks related to
policy, organization and service provision:
- Policy Departments include Departments for education policy, finance and commerce, legal, welfare and healthcare, environment and energy, European policy coordination and economic policy.
- The following Departments provide centralized services for members: ADVANTAGE AUSTRIA, WIFI, Junior Chamber/Start-Up Service, Women in Business, etc.
- The main Departments which deal with internal organization include the finance and accounting, human resources and organization, and legal affairs departments.
Our
strategic business areas
Representation
of Interests
Actively
shaping the economic backdrop in Austria
- The Economic Chamber Organization is first and foremost obligated to defend its members’ interests.
- It sets the agenda in representing the interests of Austrian business and successfully defends the interests of Austrian companies.
- It is a leading force in policymaking at the level of industries and regions, as well as at national and EU level.
Service
Supporting
forward-looking developments
- The Economic Chamber Organization is the first port of call for members who need information and advice.
- It initiates, moderates and partners regional, national and global economic promotion activities for the benefit of the Austrian economy.
Education
Professional
preparation of expert knowledge for members
- The Economic Chamber Organization is the most important training partner for the benefit of its members.
- It actively spreads knowledge related to every facet of the economy; for this it uses cutting-edge, forward-looking technologies, media, methods and processes.
- It makes sure that expert knowledge is available to its members anywhere in the world, around-the-clock and in a straightforward manner (e.g. via WKO.at).
The
Austrian system in Macedonia – Advantage Austria in Macedonia
ADVANTAGE
AUSTRIA, with its more than 110 offices in
over 70 countries, provides a broad range of intelligence and
business development services for both Austrian companies and their
international business partners. Our 800 employees and 35 consultants
around the world can assist you in locating Austrian suppliers and
business partners. We organize more than 1,200 events every year to
bring business contacts together. Other services provided by
ADVANTAGE AUSTRIA offices range from introductions to Austrian
companies looking for importers, distributors or agents to providing
in-depth information on Austria as a business location and assistance
in entering the Austrian market. In Macedonia the list of duties and
tasks of Advantage Austria are numerous, in the following we want to
highlight two aspects; interventions and lobbying with public
institutions.
Interventions/Representation
of Interests
One
of the core activities and duties of Advantage Austria is the support
of Austrian companies when it comes to interventions at public
institutions. Over the past three years our office has assisted
numerous Austrian companies, when it comes to tender participation,
customs issues or construction permits.
Lobbying/Business
climate survey
According
to the latest official statistics of the Macedonian National Bank the
total amount of Austrian direct investment in Macedonia amounts to
516,3 Mio. EUR (by 31.12.2014). Austria is thus one of the biggest
investors in Macedonia. More than 50 Austrian companies with Austrian
capital are established in Macedonia.
- Austrian companies in Macedonia are predominantly active in the services sector.
- Nearly half of the Austrian companies assess the current economic situation in Macedonia as flawed/poor. Most of them expect a similar situation in 2016.
- For 2016 48% of the companies expect an increase in turnover, more than 40% plan to hire new employees and more than 30% plan to increase investments.
- Austrian companies assess the attractiveness of Macedonia as a destination of foreign direct investment predominantly as satisfactory.
- The three top priorities of Austrian companies regarding the Macedonian Government are political stability, fight against corruption and legal security.
